Microsoft to introduce a Xbox One slim at E3 and a more powerful console in 2017

Xbox One slim rumored to be unveiled during E3 2016, and Microsoft is also planning to launch a new Xbox One codenamed "Scorpio" in 2017 with new powerful hardware.

Xbox One Scorpio 2017 rumor

Microsoft is reportedly gearing up to launch not one, but two new Xbox One consoles between 2016 and 2017. According to a new report from Kotaku, the software giant will release a slim version of Xbox One, and in 2017, the company plans to launch a more power version of the game console.

The report claims that Microsoft will introduce a cheaper version of Xbox One during the E3 game conference with a possible launch before the end of the year. It’s said that the device will be a lot smaller, it’ll feature a 2TB hard drive, which doubles any storage capacity we have already seen in the current version of the console, and it’s also possible that the new model will include support for 4K video resolutions.

Microsoft is also reportedly building an entire new Xbox One, which it’s internally known as “Scorpio”. The console is rumored to feature a more powerful graphic processor to support 4K gaming, and it’s likely that we’re going to see Oculus Rift into the mix to bring virtual reality into Xbox One, as Microsoft seems to be seeking a partnership with Oculus.

According to Kotaku, the new consoles are part of Microsoft project codenamed “Project Helix” to converge Xbox and Windows 10 gaming.

Sources familiar to the plan also reveal that instead of launching new gaming hardware every five to ten years, Microsoft is considering to move toward on releasing incremental models that will feature updated hardware and games that are “forwards and backwards compatible across both Windows 10 and different Xbox models.”

The company is expected to share more details on the roadmap for Xbox during E3, which will happen on June 13th at 12:30PM ET / 9:30AM PT.

Update, May 25, 2016: Microsoft is also reportedly planning to unveil two additional Xbox TV streaming devices at E3 2016.